OMPREHENSIVE PROBLEMS 1. Trish Himple owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95- 1234321 and her Social Security number is 123-45-6789. Trish keeps her books on an accrual basis. The income and expenses for the year are: Gross sales $352,000 Returns and allowances 4,000 Expenses: Beginning inventory (at cost) $ 85,000 Add: purchases 101,000 Cost of goods available for sale 186,000 Less: ending inventory (at cost) 75,000 Cost of goods sold $111,000 Rent 24,200 Insurance 1,800 Legal and accounting fees 5,600 Payroll 56,430 Payroll taxes 4,400 Utilities 2,100 Office supplies Advertising 6,200 Trish's bookkeeper has provided the following book-basis fixed asset rollforward: 750 imple Real Fundet Rollforward 12/31/2019 2009 ACUM ASSET CASH REGISTER IN SERVICE METHOD 2/15/2017 COST BASE 9:00 2013 2018 DER 1815.00 1.500.00 1.380.00 1815.000.000.00 NETBOOK VALUE 4.125.00 5 3.775.00 B31 RETAIL FIXTURES FURNITURE 2018 TOTAL ADOTIONS TOTAL 10/12 ? 7 4.000 1,500.00 M30.00 SS.00 67857 119.9 57.34 1,301.79 2.2017 7 10536 11.2 1515.00 2.268.333.2151 7.319 64 5 DEUVERY TRUCE DESK AND CABINETRY COMPUTER 2009 TOTAL ADOTIONS TOTAL w/11/2009 1/2000 6/1/2019 SL 37,500.00 11,900 DO 2.800.00 4,375.00 98157 32667 4,375.00 99163 176 67 5 33.135.00 10,908.33 2.4713 SOS 1815.00 2.21 The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. Trish also has a qualified home office of 250 sq.ft. Her home is 2,500 sq. ft. Her 2014 purchase price and basis in the home, not including land, is $100,000 (the home's market value is $150,000). She incurred the following costs in 2019 related to the entire home: Utilities $2,800 Cleaning 900 Insurance 1,100 Property taxes 2,000 Required: For tax purposes, Trish elected out of bonus depreciation in all years except 2019. She did not elect immediate expensing in any year. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule above. Complete Trish's Schedule C Form 8829, and Form 4562 (as necessary). Make realistic assumptions about any missing data. OMPREHENSIVE PROBLEMS 1. Trish Himple owns a retail family clothing store. Her store is located at 4321 Heather Drive, Henderson, NV 89002. Her employer identification number is 95- 1234321 and her Social Security number is 123-45-6789. Trish keeps her books on an accrual basis. The income and expenses for the year are: Gross sales $352,000 Returns and allowances 4,000 Expenses: Beginning inventory (at cost) $ 85,000 Add: purchases 101,000 Cost of goods available for sale 186,000 Less: ending inventory (at cost) 75,000 Cost of goods sold $111,000 Rent 24,200 Insurance 1,800 Legal and accounting fees 5,600 Payroll 56,430 Payroll taxes 4,400 Utilities 2,100 Office supplies Advertising 6,200 Trish's bookkeeper has provided the following book-basis fixed asset rollforward: 750 imple Real Fundet Rollforward 12/31/2019 2009 ACUM ASSET CASH REGISTER IN SERVICE METHOD 2/15/2017 COST BASE 9:00 2013 2018 DER 1815.00 1.500.00 1.380.00 1815.000.000.00 NETBOOK VALUE 4.125.00 5 3.775.00 B31 RETAIL FIXTURES FURNITURE 2018 TOTAL ADOTIONS TOTAL 10/12 ? 7 4.000 1,500.00 M30.00 SS.00 67857 119.9 57.34 1,301.79 2.2017 7 10536 11.2 1515.00 2.268.333.2151 7.319 64 5 DEUVERY TRUCE DESK AND CABINETRY COMPUTER 2009 TOTAL ADOTIONS TOTAL w/11/2009 1/2000 6/1/2019 SL 37,500.00 11,900 DO 2.800.00 4,375.00 98157 32667 4,375.00 99163 176 67 5 33.135.00 10,908.33 2.4713 SOS 1815.00 2.21 The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. Trish also has a qualified home office of 250 sq.ft. Her home is 2,500 sq. ft. Her 2014 purchase price and basis in the home, not including land, is $100,000 (the home's market value is $150,000). She incurred the following costs in 2019 related to the entire home: Utilities $2,800 Cleaning 900 Insurance 1,100 Property taxes 2,000 Required: For tax purposes, Trish elected out of bonus depreciation in all years except 2019. She did not elect immediate expensing in any year. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule above. Complete Trish's Schedule C Form 8829, and Form 4562 (as necessary). Make realistic assumptions about any missing data
